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21 April 2026

Utah law lowers state income tax rate retroactive to January 1, 2026

Utah Governor Spencer Cox approved S.B. 60 which, retroactive to January 1, 2026, lowers the state's individual income tax rate from 4.5% to 4.45%.

This marks the sixth consecutive year in which Utah has reduced its personal income tax rate, resulting in cumulative annual savings of approximately $300 to $400 for the average Utah family. Last year, H.B. 106 lowered the tax rate from 4.55% to 4.5% retroactive to January 1, 2025. (See Tax Alert 2025-0958.)

Ernst & Young LLP insights

The Utah Tax Commission is expected to update its withholding formula and tables to reflect the lower tax rate under S.B. 60. Once available, the updated withholding instructions will be available here.

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Workforce Tax Services - Employment Tax Advisory Services

Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor

Document ID: 2026-0913

 

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